Court lifts order blocking clearance of Sh45b rice from Mombasa port

The High Court in Mombasa has lifted an order stopping the clearance of 250,000 tonnes of rice worth Sh45 billion from the Port of Mombasa.

Justice Gregory Mutai lifted the early orders by Justice Juirus Ngaah barring the importation and clearance of the rice after the petitioners withdrew their case.

The consignment was part of the 500,000 tonnes of duty-free rice approved by Agriculture Cabinet Secretary Mutahi Kagwe and his Treasury counterpart, John Mbadi.

The approval on July 28, 2025, that was aimed at stabilising rice prices, however, sparked legal battles after farmers challenged the volumes, saying it would depress their earnings.

A court reduced the volumes to 250,000 tonnes.

But a new legal battle emerged after the Agriculture and Food Authority (AFA) cancelled the Kenya National Trading Corporation (KNTC) tender to firms to import the rice.

At least 17 rice importing agents and two businessmen moved to court to challenge AFA’s decision to cancel KNTC tenders, arguing that it violated transparency of processes.  

However, on September 30, the two businessmen, Ibrahim Mohamed and Abdiaziz Noor, consented with Celeste Trading Ltd and Gulf Bakers Ltd and 15 other importers to withdraw the application barring the clearance of the rice that had been stuck aboard a ship at the Port of Mombasa for over a month.

On October 1, Justice Mutai allowed for the withdrawal of the application by Mohamed and Noor and the 17 importing agents to allow for the offloading of grade one rice.

“In this case, the petitioners have withdrawn their application dated September 22, 2025. I can see no reason why they must be compelled to pursue claims, they have no desire to proceed with or to benefit from orders they have no use for. To hold otherwise would, in my view, be very oppressive,” said Justice Mutai.

The businessmen, through their lawyer Derrick Odhiambo, signed a consent on the grounds that the said orders were preventing the clearance of the consignment that had already been shipped.

Odhiambo said that rice is a highly perishable commodity that would spoil when exposed to the hot, humid air of the Port of Mombasa. said 

Justice Ngaah suspended the decision of the AFA dated September 10, 2025, purporting to revoke the allocation made to the KNTC vide a letter dated July 29, 2025.

The judge also suspended the tender awarded by the corporation on September 9, 2025.

“The AFA, whether by itself, its agents, servants, or assigns, is hereby restrained from issuing, reallocating, or otherwise purporting to allocate the 250,000 tonnes rice importation quota to any private individuals or entities outside of the lawful tender process conducted by KNTC pursuant to Gazette Notice No. 10353 of July 28, 2025 and the Court ruling of August 19, 2025,” said Justice Ngaah.

The two businessmen sued AFA, KNTC, Agriculture CS, Trade CS, Treasury CS, Kenya Revenue Authority, Commissioner Customs and Border Control Department and the Attorney General .

The 17 agents were cited as interested parties to the petition, having been among the successful bidders whose tenders were cancelled by KTNC. The corporation informed the agents that a different company will undertake the importation of the rice.

The successful bidders allege that the company awarded the whole tender was never among those invited to bid. KNTC had invited 60 qualified importers to bid for the tender, but only the 17 were successful.

KNTC had planned importation 500,000 tonnes of rice, but the same was challenged in court by farmers from Kerugoya.

tender they won after a competitive bidding on September 17, 2025.

The importers said that the tender cancellation exposed the process to clandestine reallocation to undisclosed private entities.

The businessmen said that KNTC conducted a competitive tender process culminating in awards to 17 successful bidders on September 9, 2025.

Among those aggrieved by the cancellation are Pakistani rice exporters.

The Pakistani High Commission wrote to KNTC days after the cancellation of the tender and requested clarification on how to best proceed.

“The High Commissioner further seeks clarification on the specific procedures and guidelines governing the issuance and administration of this quota to enable Pakistani exporters to engage with the Kenyan market with confidence and clarity,” read the High Commissioner letter dated September 12 to KNTC.

KNTC was originally expected to import 500,000 tonnes of grade one rice, but the same was challenged in court by farmers from Kerugoya, and Justice Edward Muriithi allowed for the importation of 250,000 MT.

On August 19, 2025, the High Court in Kerugoya limited the importation of the said rice to 250,000 MT that is expected by October 31, 2025.

The rice importers who consented and had qualified for the rice importing tender include Mali Safi Commodities Limited, Tridah Wholesalers Limited, Massatech Kenya Limited, Voono Grains Kenya Limited, One Commodities Company Limited, Deli-Convie Limited, Export Trading Company Limited, House of Procurement Limited, Krish Commodities Limited, Zuchero Trading Limited, Celeste Trading Limited, Gulf Bakers Limited, Kamili Packers Limited, Global Marketing Enterprise Limited, Coмpaст Inland Logistics Sez Limited, Go Rice Company Limited, and the 1rice Importers Association of Mombasa. 

However, House of Procurement Limited opposed the offloading of the rice, as they will be prejudiced.